Buzz and Banter
Our work shows, that in the past, sustained increases in the size of the long duration repos (previously 28 day, now 14 day) and large net increases of $3.5b/day for 3 or more days are required to alter market direction."
This is correct. What is important is the cumulative amount added through the repo market. The amount the Fed seems to be adding is enough to keep the markets liquid and mitigate volatility.
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